Bitcoin News Today: Odin.fun Suspends Trading After 60 BTC Unauthorized Withdrawal Drives $ODINDOG Down 40%

Generated by AI AgentCoin World
Wednesday, Aug 13, 2025 12:18 am ET1min read
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Aime RobotAime Summary

- Odin.fun halted trading/withdrawals after 60 BTC unauthorized withdrawal caused 40% $ODINDOG token value drop.

- Founder Bob Bodily confirmed platform compromise but limited to his account; investigation ongoing.

- Second major security breach follows April 2025 SIWB vulnerability, eroding user trust in platform's transparency.

- Market reaction highlights memecoin sector risks as security lapses trigger cascading liquidity and reputational damage.

Odin.fun has temporarily suspended trading and withdrawals following an unauthorized withdrawal incident that triggered a 40% drop in the value of its native token, $ODINDOG. The platform reported that approximately 60 BTC were moved without authorization, raising concerns about potential security vulnerabilities [1]. The suspension, announced on August 13, 2025, came after users noticed a sharp decline in platform deposits, which dropped from 291 BTC to 232.8 BTC within two hours [1].

Bob Bodily, the founder and primary representative of Odin.fun, confirmed the incident on X (formerly Twitter), stating that the platform had been compromised, though only his Odin.fun account was confirmed to be involved at this stage. “Still digging,” he added, indicating that the investigation was ongoing [1]. Bodily also acknowledged the ongoing investigation into the unauthorized withdrawals and emphasized the need to ensure user funds were secure during the process [1].

The market reacted swiftly, with $ODINDOG losing 40% of its value in the wake of the news. The incident has not only shaken investor confidence but also disrupted the platform’s liquidity, prompting users to reassess their positions. The unauthorized movement of BTC has highlighted gaps in Odin.fun’s security infrastructure, with the platform yet to introduce a new security framework to address these concerns [1].

This marks the second major security incident for Odin.fun in a short timeframe. In April 2025, a vulnerability in the platform’s “Sign-In With Bitcoin” (SIWB) canister allowed attackers to impersonate users by exploiting a flaw in public key verification. That incident also led to unauthorized asset clearance and a 40% drop in the $ODINDOG token [1]. The recurrence of such issues has led to criticism from users, with some questioning the transparency and responsiveness of the platform’s leadership [1].

The Odin.fun situation reflects broader challenges within the memecoin space, where speculative activity and rapid token launches often outpace security and risk management. Similar platforms, such as Pump.fun and SunPump, rely heavily on community trust and engagement. Security breaches on these platforms can have cascading effects, as seen in the case of Four.Meme, which suffered a major breach and subsequent reputational damage [1].

For Odin.fun to regain user trust, it must implement stronger authentication protocols, maintain open communication, and provide a clear path forward. Without these steps, the platform risks further reputational damage and a loss of market position in a sector where trust is paramount [1].

Source: [1] Odin.fun users panic as suspicious withdrawals drain ... (https://www.mitrade.com/insights/news/live-news/article-3-1033975-20250813)